Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Skill Check 5 – Death of an employee, Frustration of contract

1. Can you pay a family member of a deceased employee over $15,000 in final pay if they ring up payroll to request this?

Yes / No

2. Which of the following statements best describes a final pay for a deceased employee?

(a) Outstanding wages and salary, minimum leave entitlement and accrual of 8%, along with any agreed terms as per the employee employment agreement. All are taxed normally based on the type of payment being made.

(b) All payments are paid without being taxed and signed off by the executor of the employee estate.

(c) Taxed after IR approves and deposited into a trust account under the instructions of the executor of the estate.

3. Is the frustration with a contract situation a common activity in payroll?

Yes / No

4. Which of the following situations would be considered a frustration of contract?

(a) An employee is made redundant after a full consultative process.

(b) A storm swipes out the whole apple crop, and there is no work now for the apple pickers.

(c) An employee is found to have breached serious misconduct and, after a series of meetings, is informed that their employment has been terminated.

© New Zealand Payroll Practitioners Association, Mar 2026, Ver 9

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